San Diego Real Estate Price Trends for May
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San Diego County Market Update
May 2009
The average price of homes sold in San Diego County last month increased by 4.5% for single family homes and 3.9% for attached homes, mostly condos. Also for the first time in 7 quarters the average price per square foot for homes ceased declining and increased by 2.5% last month. Clearly the market has shifted as indicated also by the decline in inventory of homes for sale. Today there is less than 5 months of inventory, indicating a sellers market, which is driving the prices of homes up. The inventory and price per square foot trend can be seen on our website under “San Diego Market Trends”.
The number of home sales also increased 10% last month which is a significant rise. The one shadow on the horizon is there have been several reports that banks will be releasing more foreclosures in the near future which will raise the inventory and possibly holt the trend of price increases.
The mortgage interest rates are at a 50 year low and presently the average for a 30-year fixed is 4.83%. As we mentioned last month, these unprecedented low rates are expected to vanish around September when Federal funding runs out. Obviously this is an unprecedented time to buy and don’t forget the $8,000 tax credit for first time home buyers who are defined as anyone who has not owed a home in the last 3 years.
The majority of our real estate clients come from referrals. Could you please do us a favor, if you hear of someone who is buying or selling a home please keep us in mind? Send us an e-mail or give us a call. |
Red: Detached(Single Family), Blue: Attached Source: Sandicor Multiple Listing Service
Source: Federal Home Loan Corp |
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